The effects of monetary policy on the Islamic financial services industry
Purpose – The purpose of this paper is to investigate the effects of monetary policy on the Islamic financial service industry by studying the findings of the existed literature. Design/methodology/approach – Because of the unavailability of the empirical models in the existing study, the authors...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Emerald Group Publishing Limited
2016
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/51355/ http://irep.iium.edu.my/51355/ http://irep.iium.edu.my/51355/ http://irep.iium.edu.my/51355/4/51355.pdf http://irep.iium.edu.my/51355/7/51355-The_effects_of_monetary_policy_on_the_Islamic_financial_services_industry_SCOPUS.pdf |
| Summary: | Purpose – The purpose of this paper is to investigate the effects of monetary policy on the Islamic
financial service industry by studying the findings of the existed literature.
Design/methodology/approach – Because of the unavailability of the empirical models in the
existing study, the authors used past studies review and proposed a new theoretical model.
Findings – Majority of these studies have documented the negative effects with the exception of a few.
The transmission of the monetary policy has been taken place through interest rate risk, asset-liability
mismatch, as well as deposit and financing instability. Furthermore, the examined studies have
confirmed the viability of the Islamic monetary policy.
Originality/value – The proposed model may offer some insights to policy makers if it is examined
empirically |
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